The first phase of the Entertainment Market Study concludes that the existing entertainment
facilities meet current demands, but to remain competitive, the community should discuss
building a new multi-purpose facility with an arena seating about 10,000 people. That
recommendation is included in a report from KPMG of St. Petersburg, Florida, which is
leading the project team studying the hospitality, convention and entertainment business
in Lincoln and Lancaster County.

"The good news is that our facilities are meeting our current needs," said Mayor Don
Wesely. "But the report sounds the warning that the city must look at our future needs.
We must determine how we can maintain our current market share, stay competitive with
other cities and meet the needs of our growing community."

The project team began the study in January by touring facilities in Lincoln and meeting
with members of an advisory committee. In addition to KPMG, the team includes
representatives of Sinclair Hille and Associates of Lincoln and Leo A Daly of Omaha. The
market analysis was the first phase, and the team will now begin a strategic facilities
assessment and a financial analysis.

The recommended building concept includes total exhibit space, including the arena floor,
of 50,000 to 60,000 square feet and meeting and ballroom space of 12,500 to 15,000 square
feet. The study also concluded that renovating Pershing Auditorium would be cost
prohibitive because of its age, functionality, site limitations and physical condition.
Pershing, which has a seating capacity of 7,500, was built in 1956, when the city had a
population of about 115,000.

"Pershing Auditorium has served this city well for 45 years, but it simply doesn’t have the
flexibility that today’s events demand," said Wesely.

In its overview of existing facilities, the report notes Pinewood Bowl Amphitheater is
underutilized and concludes that by offering alcohol sales at certain events, "the facility
will be in a more competitive position to attract more concert activity." Other facilities
included in the study are the Lied Center, the Devaney Sports Center, Memorial Stadium,
State Fair Park, the Lancaster Event Center and the new baseball and softball complex now
under construction.

The consultants also recommend that a new building:

be in balance with the hotel room inventory;

be as flexible as possible;

be able to hold smaller, concurrent events in addition to the large events that
would use the total space; and

have ballroom and meeting space that is of "hotel quality."

The $110,000 cost of the study is being shared by the City of Lincoln ($50,000), the
Chamber of Commerce ($50,000) and the Downtown Lincoln Association ($10,000). A final
report is expected to be issued in April.